By Omor Ibne Ehsan
Publication Date: 2026-10-22 13:10:00
IBM’s software division just delivered a quarter that silenced critics who called the July stumble a warning sign, but the real test has nothing to do with last quarter’s numbers and everything to do with what Red Hat does next.
IBM (NYSE:IBM | IBM Price Prediction) closed the regular session on October 21 at $251.46, up 3.94%. It then released third-quarter results that sent shares up as much as 6% after hours.
Revenue came in at $17.1 billion against expectations of $16.82 billion. Adjusted EPS of $2.95 exceeded the $2.86 estimate, and the earnings release filed with the SEC shows free cash flow rising to $3.03 billion.
The beat follows a rough July. Software deals slid that quarter, and EPS came in at $2.93, missing the $2.97 estimate. In an interview after this week’s report, Chief Executive Arvind Krishna said that stumble came down to timing. He declined to promise more than IBM can deliver.
The share price data points in two directions. The stock gained 10.35% in the…
